JDS Uniphase Corp. (JDSU, Financial) filed Quarterly Report for the period ended 2010-04-03.
Jds Uniphase Corp. has a market cap of $2.4 billion; its shares were traded at around $10.94 with and P/S ratio of 1.8. JDSU is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, RS Investment Management, Bruce Kovner of Caxton Associates, Wilbur Ross of Invesco Private Capital, Inc., George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Net revenue in the third quarter of fiscal 2010 increased 19%, or $53.2 million, to $332.3 million from $279.1 million in the same quarter a year ago. We experienced increases in revenue in all segments due to improvements to the wider economy. The increase in our Communications Test and Measurement segment came primarily from the Storage Network Tools business
Net revenue in the nine months ended April 3, 2010 decreased 4%, or $37.1 million, to $973.0 million from $1,010.1 million in the comparable period in the prior year. The decrease is primarily due to a decrease in revenue for our CCOP segment as a result of deferral of our customers communication product deployment. The decrease in our CCOP segment was mainly driven by the decline in demand for our Modules and Submarine products. Module revenues declined due to a reduction in sales to six of our largest customers as a result of the global economic slowdown. The Submarine product line has historical cyclical demand swings due to the nature of the deployments. This is partially offset by demand increases in our Communications Test and Measurement segment, primarily due to the acquisition of the Storage Network Tools business in the first quarter of fiscal 2010. Our AOT business experienced demand increases in 3D, Aerospace, Defense, and Currency products, partially offset by a reduction in transaction card volume.
Gross profit in the third quarter of fiscal 2010 increased 30%, or $30.5 million, to $131.9 million from $101.4 million in the same quarter a year ago. The increase is primarily due to volume improvements and, to a lesser extent, production in our Communications Test and Measurement and CCOP segments. Additionally, gross profit increased in our CCOP segment due to volume led increases and overhead absorption, with savings from the conversion to contract manufacturers. Gross profit in our AOT group increased to record levels as a result of favorable cyclical demand in our currency productions; however, such gross profit was partially offset by softer demand in our Authentication Solutions divisions, leading to lower absorption.
Gross profit in the nine months ended April 3, 2010 remained relatively flat with a slight increase of $1.9 million to $387.2 million from $385.3 million in the comparable period in the prior year. We continue to benefit from lower costs associated with our outsourcing initiatives. Such benefits are partially offset by the transition costs as a result of the outsourcing initiative.
R&D expense for the nine months ended April 3, 2010 decreased 4%, or $4.8 million to $123.5 million, from $128.3 million in the same period a year ago. As a percentage of revenue, R&D expense remained flat at 13%. The decrease for the nine months ended April 3, 2010 is primarily due to headcount reduction and other cost reduction efforts across all segments.
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Jds Uniphase Corp. has a market cap of $2.4 billion; its shares were traded at around $10.94 with and P/S ratio of 1.8. JDSU is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, RS Investment Management, Bruce Kovner of Caxton Associates, Wilbur Ross of Invesco Private Capital, Inc., George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Statements contained in this Quarterly Report on Form 10-Q which are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement may contain words such as anticipates that, believes, can impact, continue to, estimates, expects to, intends, may, plans, potential, projects, to be, will be, will continue to be, continuing, ongoing, or the negative thereof or other comparable terminology regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements include statements regarding: our expectations related to the impact of recent accounting pronouncements on our consolidated financial statements; our expectation related to lease expenses through fiscal 2018; our belief that the Companys current process for writing down inventory appropriately balances the risk in the marketplace with a fair representation of the realizable value of the Companys inventory; our expectation that the zero coupon convertible notes will be retired within one year; our plan to continue to take advantage of opportunities to further reduce costs through targeted, customer-driven restructuring events; our expectation that payments related to severance and benefits will be paid through fiscal 2011; our expectation to recognize $15.5 million of unrecognized stock-based compensation cost related to stock options over an estimated amortization period of 2.2 years; our expectation to amortize $0.4 million of unrecognized stock-based compensation cost related to our ESPP in the first quarter of fiscal 2011; our expectation to amortize $29.1 million of unrecognized stock-based compensation cost related to Full Value Awards over an estimated amortization period of 1.8 years; our expectation that the Company will have to contribute approximately $0.3 million to defined benefit plans in fiscal 2010; our expectation to incur cash outlays of approximately $4.6 million related to our defined benefit pension plan in fiscal 2010; our belief that the ultimate outcome of the Texas tax audit will not have a material adverse effect on our financial position, cash flows or overall trends in results in operations; our expectation that the Companys potential tax liability related to a Texas franchise tax audit will be from zero to $31.2 million, plus interest and penalties; managements belief that the factual allegations and circumstances underlying the securities actions, derivative actions, and the ERISA class action are without merit; our expectation that we will continue to encounter a number of industry and market structural risks and uncertainties that will limit our business climate and market visibility; our expectation that the current trend of consolidation in the communications industry will continue; our expectation that risks related to manufacturing transitions of our North American assembly manufacturing program will continue and are expected to diminish over the next several quarters; our expectation that the introduction of new product programs and introductions will continue to incur higher start-up costs and increased yield and product quality risk among other issues; our belief that investment in research and development (R&D) is critical to attaining our strategic objectives; our continued efforts to reduce total operating spending; our intention to continue to address our selling, general and administrative (SG&A) expenses and reduce these expenses as and when opportunities arise; our expectations regarding future SG&A expenses; our expectation that none of the non-core SG&A expenses will have a material adverse impact on our financial condition; restructuring estimates related to sublease income or lease settlements; our assumptions related to pension and postretirement benefits; our belief that our assumptions related to discount rate movements in connection with calculating benefit costs is conservative; our estimates related to post-acquisition investment in research and development and the projected completion date of post-acquisition research and development; our belief that our existing cash balances and investments will be sufficient to meet our liquidity and capital spending requirements at least through the next 12 months; and our expectation that gains and losses on derivatives will be offset by re-measurement gains and losses on the foreign currency dominated assets and liabilities.Net revenue in the third quarter of fiscal 2010 increased 19%, or $53.2 million, to $332.3 million from $279.1 million in the same quarter a year ago. We experienced increases in revenue in all segments due to improvements to the wider economy. The increase in our Communications Test and Measurement segment came primarily from the Storage Network Tools business
Net revenue in the nine months ended April 3, 2010 decreased 4%, or $37.1 million, to $973.0 million from $1,010.1 million in the comparable period in the prior year. The decrease is primarily due to a decrease in revenue for our CCOP segment as a result of deferral of our customers communication product deployment. The decrease in our CCOP segment was mainly driven by the decline in demand for our Modules and Submarine products. Module revenues declined due to a reduction in sales to six of our largest customers as a result of the global economic slowdown. The Submarine product line has historical cyclical demand swings due to the nature of the deployments. This is partially offset by demand increases in our Communications Test and Measurement segment, primarily due to the acquisition of the Storage Network Tools business in the first quarter of fiscal 2010. Our AOT business experienced demand increases in 3D, Aerospace, Defense, and Currency products, partially offset by a reduction in transaction card volume.
Gross profit in the third quarter of fiscal 2010 increased 30%, or $30.5 million, to $131.9 million from $101.4 million in the same quarter a year ago. The increase is primarily due to volume improvements and, to a lesser extent, production in our Communications Test and Measurement and CCOP segments. Additionally, gross profit increased in our CCOP segment due to volume led increases and overhead absorption, with savings from the conversion to contract manufacturers. Gross profit in our AOT group increased to record levels as a result of favorable cyclical demand in our currency productions; however, such gross profit was partially offset by softer demand in our Authentication Solutions divisions, leading to lower absorption.
Gross profit in the nine months ended April 3, 2010 remained relatively flat with a slight increase of $1.9 million to $387.2 million from $385.3 million in the comparable period in the prior year. We continue to benefit from lower costs associated with our outsourcing initiatives. Such benefits are partially offset by the transition costs as a result of the outsourcing initiative.
R&D expense for the nine months ended April 3, 2010 decreased 4%, or $4.8 million to $123.5 million, from $128.3 million in the same period a year ago. As a percentage of revenue, R&D expense remained flat at 13%. The decrease for the nine months ended April 3, 2010 is primarily due to headcount reduction and other cost reduction efforts across all segments.
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